US embassy cable - 02FRANKFURT10952

UNCLAS SECTION 01 OF 02 FRANKFURT 010952 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV, GM 
SUBJECT:  BADEN-WUERTTEMBERG GREEN PARTY EXPRESSES 
FRUSTRATION WITH NATIONAL GREEN PARTY LEADERS AND THE SPD 
 
 
1. (U) Summary:  On November 23, the Baden-Wuerttemberg (B- 
W) Greens held their first state convention since the 
September national elections to discuss policy.  Leading B-W 
party leaders such as caucus chief Winfried Kretschmann and 
Freiburg Lord Mayor Dieter Salomon are concerned about the 
viability of the national SPD-Green Party coalition.  They 
cautioned the national leadership not to allow the party to 
be dragged down by the Social Democratic Party (SPD), which 
has been heavily criticized in the weeks since September's 
national elections for breaking campaign promises.  Some 
even called for forming a coalition with the Christian 
Democratic Union (CDU), but were not supported by the 
majority of the assembled delegates.  The overall mood was 
anger at the SPD, general frustration with Berlin leadership 
and the direction of the Green Party.  End Summary. 
 
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Kuhn Speaks of Severe Crisis 
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2.  (U) The Baden-Wuerttemberg (B-W) Green Party met in 
Esslingen on November 23 to discuss policy.  It was the 
party's first meeting since its strong showing in last 
September's national elections.  In his keynote address the 
delegates, national chairman Fritz Kuhn admitted that the 
national government and the Green Party is in severe crisis. 
The proposed increase in pension contributions and the 
extension for the Obrigheim nuclear reactor (contrary to 
nuclear phase-out plans) are big setbacks in terms of Green 
Party policy priorities.  Kuhn urged the Greens' federal- 
level coalition partner, the SPD, to tell voters the truth 
about public budget issues.  Half of Germany's 16 states 
have budgets in violation of state constitutional 
guidelines.  Kuhn suggested that extensive structural 
reforms of the pension and health system were needed, along 
with consolidation of the budget, a new program to assist 
start-up companies, and a continuation of the eco-tax. 
According to Kuhn, a broadening of the basis for assessing 
social contributions is an absolute necessity.  This 
expanded basis may include earnings from rents and other 
private income such as from investments. 
 
3.  (U) Unlike the SPD, the Green draws most of its support 
from small and medium-sized businesses, Kuhn continued.  The 
SPD, with support from large corporations, does not 
understand that bigger companies are much more capable of 
dealing with non-wage labor cost increases than companies 
with only a handful of employees.  Kuhn also insisted that 
the Green Party would not tolerate an increase in the value- 
added tax since this would be an additional blow to 
stumbling economic growth.  Kuhn sharply attacked the 
Christian Democrats for lacking in constructive alternative 
suggestions for economic reform.  He dismissed the CDU 
investigative committee on alleged election fraud by SPD- 
Greens as a "waste of time." 
 
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Salomon Expects SPD/Green Government Will Fail 
--------------------------------------------- - 
 
4. (U) Kuhn's speech received only moderate applause.  In 
the two-hour discussion that followed, leading B-W Greens 
voiced their frustration, anger and disappointment at the 
performance of the governing Party coalition.  Freiburg 
Green Lord Mayor Dieter Salomon delivered a rousing speech, 
urging the Berlin leadership to reverse disastrous recent 
developments.  He received a standing ovation.  He warned 
the party that good poll results did not mean support for 
Green policies but a reaction to SPD failings: the FDP did 
similarly well during the CDU donation scandal.  The SPD, 
according to Salomon, does not understand that, "This is its 
last chance to achieve important reforms.  Instead, 
Schroeder is allowing labor unions to lead him around by the 
nose while the economy runs aground."  Salomon criticized 
Kuhn for not saying anything new.  The Green Party has the 
right ideas, but Berlin leaders are not implementing them, 
Salomon said. 
 
5.  (U) Salomon told the delegates that public mood is so 
bad that the 11 percent the Greens won in recent polls would 
"melt like snow in the sun."  Salomon criticized the tax 
reform for being well-intentioned but ill-conceived and 
undermining the financial basis of the communities.  Using 
his own city as an example, Freiburg's budget deficit will 
reach 80 million Euro in 2003, which will mean the loss of 
several hundred jobs in the city administration.  In that 
context, Salomon blasted the chief of Ver.di (the service 
workers union) Frank Bzirske for demanding a three percent 
plus increase in wages.  "The Chancellor is in nirvana and 
the Greens stick blindly to the coalition agreement.  The 
federal government will fail with these irresponsible 
economic policies.  It is better the Green Party leave the 
coalition now, than be dragged under by Social Democratic 
chaos." 
 
6.  (U) Eugen Schlachter, a close friend of the former Green 
Party financial expert Oswald Metzger, also called on the 
Green leadership in Berlin to change coalition partners 
rather than continue with damaging compromises.  Otherwise, 
the Green Party may go under with the SPD.  In a sharp stab 
at SPD Secretary General Olaf Scholz's statement that the 
SPD should control the policy discussion on children's 
education and upbringing Schlachter stated "whoever talks 
such nonsense is unsuitable for a governing coalition." 
 
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CDU Needs to Make the First Step 
-------------------------------- 
 
7.  (U) Green Bundestag members did not welcome the 
suggestions by some rank and file members that the Green 
Party should change coalition partners.  B-W Caucus Chief 
Winfried Kretschmann pointed out that Greens and CDU have 
many things in common but said, "The CDU is still too weak 
on environmental issues."  It is up to the CDU to make the 
first move to show it is taking environmental issues 
seriously.  Kretschmann said the national Green leadership 
in Berlin needed to remember its roots in the state party 
and improve communication.  He also said that the extension 
of the Obrigheim nuclear reactor's operating license should 
have never happened. 
 
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Comment 
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8.  (SBU) Comment: The recent convention shows that the 
Green Party rank and file in the party's southwest heartland 
is no longer willing to keep quiet.  Fear, anger and 
frustration are growing among the Greens that the crisis in 
the national government, in their view the fault of the SPD, 
will drag them down.  Green Party leaders in Berlin are seen 
as too eager to please the SPD and too willing to compromise 
on key issues.  The Green Party convention in Esslingen made 
clear that some in the party believe a change of coalition 
partner is necessary.  Green Party members at the convention 
also told us that interpersonal relationships between SPD 
and Green partners have been severely damaged in the past 
several weeks, further eroding cooperation. 
 
BODDE